11 Questions to Ask Before Working with a New DSP

April 28,

Check now

The demand-side platform (DSP) that you select for purchasing campaign inventory significantly influences your company’s journey towards sustainable growth. So, how can you assess if a DSP will yield the desired results as measured by genuine business outcomes?

Here are 11 critical questions to pose to any vendor considering their DSP. Their responses will clarify whether it is worth testing the DSP and integrating it into your ad-tech stack.

1. Does your DSP utilize machine learning?

A DSP’s core function is to facilitate efficient inventory purchases, and machine learning (ML) plays a pivotal role in enhancing that efficiency. Moreover, ML is crucial for achieving a profitable return on ad spend (ROAS). Each ad impression evaluated and acquired by the DSP for your campaigns should help refine your targeting criteria. If the DSP you are contemplating does not implement machine learning, it may be time to continue your search.

2. Was your machine learning developed internally or outsourced?

Using outsourced ML solutions may indicate that the DSP operates as a white-label bidder, which generally proves to be less effective. Such solutions tend to be generic, requiring extensive effort to tailor them to your specific business needs. Moreover, the time taken for the system to learn your target audience and their locations translates into unnecessary media spend and a longer wait for returns. With the fast-evolving digital advertising landscape influenced by new privacy regulations, a DSP with an in-house ML team can quickly adapt to these market changes.

3. Does your machine learning incorporate deep neural networks?

ML systems leverage neural networks—computer networks that emulate human brain functionality. These networks analyze signals, assign importance, make decisions, and review outcomes to improve future decision-making. Unlike human cognition, neural networks can handle a far greater volume of signals. The more neurons within the network, the more effectively it can evaluate impressions and predict outcomes. Deep neural networks (DNNs) possess a larger number of neurons, which helps them discern intricate details that can lead to enhanced and faster ROAS.

The two advantages of DNNs include learning from smaller datasets and executing multiple inference models during bid requests—important in today’s market, which is increasingly sensitive to privacy. As a result, you can expect to obtain ROAS within two to three weeks of using them.

4. How many impressions are processed daily?

For instance, Moloco Ads processes approximately 350 billion impressions each day. This impressive scale ensures that your audience pool remains fresh, thereby minimizing the impact of diminishing returns.

5. Do you insist on both attributed and unattributed postbacks?

This inquiry may delve into technical details, but it is vital for achieving your expected results. To maximize the intelligence of ML, Moloco encourages all clients to provide comprehensive postback data from all partners. Access to your campaign results across platforms accelerates the delivery speed of ROAS.

6. How swiftly does your ML adapt and learn?

The effectiveness of a DSP’s ML capability can be assessed by asking about its output rate—how rapidly it learns. In the context of a long-term campaign, waiting months to see ROAS is excessive. You should anticipate results in weeks.

Once again, using DNNs with your first-party data is advantageous as it avoids the necessity of disentangling insights from other brands, thus allowing for a sharper focus on your campaign.

Tip: While most DSPs do not disclose specific campaign results, they should provide CPA, ROAS, and CPI metrics segmented by industry.

7. Is there a bid optimizer in use?

The principal role of a DSP is to streamline inventory purchasing, and bid optimization is essential to achieving this. Moloco's bid optimizer enhances ROI through improved predictions of win probabilities—an increasingly important feature as auctions shift towards first-price formats. Understanding market competition and predicting win rates are crucial for acquiring the impressions required to expand your customer base.

8. How do you manage budget optimization?

While many DSPs optimize budgets daily, it is equally important to assess longer time frames for budget allocation. The DSP should not solely fulfill daily expenditure requirements, but should also identify periods of user activity that correspond with higher conversion rates. For instance, app installs are generally higher during weekends. Moloco's Weekly Budget Optimizer examines campaign performance regularly to optimize spending according to time and day.

interwiser offers professional and transparent service.

9. What certifications has your DSP obtained? Is it regarded as an innovator?

Brand safety is paramount for all marketers. You want to avoid having your ads shown alongside inappropriate content or misaligned with your brand’s values. The industry-standard IAB Gold Standard 2.0 certification signifies a DSP’s commitment to brand safety. Awards further validate a technology’s efficacy, with independent assessments deeming it the best available in the market. For example, Moloco earned a SMARTIES X award for its impactful collaboration with Korean shopping platform GS SHOP.

10. Is your DSP transparent regarding its performance results?

Transparency in performance is essential for all advertisers. You should be able to ascertain where every impression is placed. Inquire if the DSP provides access to log-level data and the formats available for download. This data allows marketers to strategize based on the analysis of creatives, unique impressions, and traffic quality.

11. Can you offer creative assistance and expertise?

Does your DSP include a model for creative selection and A/B testing capabilities? Moloco has a feature that automatically allocates budget to top-performing ad formats, assisting advertisers in honing an effective creative strategy. Many app publishers prefer in-house ad creation to optimize costs and iterate quickly, making creative support and expertise from a DSP invaluable.

Moloco Studio is committed to combining creativity, technology, and extensive data insights to exceed even the most rigorous performance metrics.

Conclusion

As a final tip for comparing DSPs, ensure to start with a uniform budget and campaign duration. When evaluating a new DSP against your current one, employing identical test budgets and timelines will yield accurate comparisons. Spending more with one DSP may skew results, giving it an unfair advantage.

Are you interested in discovering more about Digital Signal Processing Products? Contact us today to secure expert consultation!